Contribution to the Host State Development: A Marginalised Criterion?Dalia Hussein

ABSTRACT

The contribution to the host state economic development has been considered one of many elements to characterise a project as a protected investment under the ICSID Convention.The Preamble of the ICSID Convention, the Report of theWorld Bank Directors, as well as famous scholars considered the contribution to economic development an important and even central criterion for the application of the Convention.

However, ICSID tribunals either rejected the criterion or applied it inconsistently. It is suggested that the reason for this erronous rejection or inconsistent application is the lack of a clear definition of the criterion.An economic definition of this criterion may be of assistance.